Credit Building

ClareVH24

A few months ago, the Weekly Email gave details of another way of building a credit score… not a usual credit card.  It was something along the lines of paying a small amount into a card/loan and then getting the cash back at the end of the year. 

Can anyone help? 

Many thanks.

MorningcoffeeIV

It's a more desperate way of building history (not score) and not particularly useful.

But if you can't get a phone contract, a credit card, or anything else, you could consider it.

PRAISETHESUN

I assume you're referring to the paid credit (re)building services, such as loqbox or similar? Personally, I wouldn't bother with them. Anything you can pay to do to improve your credit history you can do yourself for free - usually through good management of existing credit facilities (utilities, phone contracts, credit cards, etc).

Also to note is that "credit scores" are not a thing in the UK. Each lender uses their own proprietary criteria to assess credit applications, but the "score" or "rating" provided by the credit reference agencies is not one of the factors used to make lending decisions. So when you check your credit files, you need to focus on the actual data. Ultimately you need to demonstrate and build up positive credit history by focusing on managing credit responsibly - pay cards/bills on time, keep within your limits, etc.

Shanwick

Products such as Loqbox Save can be helpful in some very specific cases such as establishing credit files or adding reporting lines to existing files when other paths are unavailable or difficult. Such products tend to be less useful once credit lines have been established but whether a product makes sense really depends on the individual circumstances.

cymruchris

Shanwick said:

Products such as Loqbox Save can be helpful in some very specific cases such as establishing credit files or adding reporting lines to existing files when other paths are unavailable or difficult. Such products tend to be less useful once credit lines have been established but whether a product makes sense really depends on the individual circumstances.

Totally agree - Loqbox does have its place - I've used it, and it helped in my circumstances. If you can use other routes, or already have credit lines, then there are other ways, but if you're establishing from ground zero, it can be a big help in giving you some positive credit history.

ClareVH24

Thank you all for your help.  I think I’ll keep away from Loqbox etc then. I think it’s time to get my name on utilities etc rather than just my husbands.